This paper examines the impact of business environment on the productivity of retail firms in Cameroon, which represent more than 50% of all firms. Using data from the 2009 Enterprise Surveys an overview of retail activities allows to identify the main factors characterizing the environment in which firms operate, i.e. access to credit, regulatory burden, illicit trade, administrative delays, infrastructure and quality of labour. A Structural econometric analysis is used to quantify the impact of these factors over firm performance. Results are used to suggest policy reforms that would improve the business climate and enhance firms’ productivity.